# MCQ Questions for Class 11 Accountancy Chapter 3 Recording of Transactions 1 with Answers

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## Recording of Transactions 1 Class 11 MCQs Questions with Answers

Question 1.
Which of the following equation’s correct?
(a) Assets = Liabilities – Capital
(b) Assets = Capital – Liabilities
(c) Assets = Liabilities + Capital
(d) Assets = External Equities

Answer: (c) Assets = Liabilities + Capital

Question 2.
Which of the following is correct?
(a) Profit/Loss = Closing Capital + Additional Capital – Drawings – Opening Capital
(b) Profit/Loss = Closing Capital-Drawings-Additional Capital – Opening Capital
(c) Profit/Loss = Opening Capital + Drawings made – Additional Capital – Closing Capital
(d) Profit/Lose = Closing Capital + Drawings made – Additional Capital – Opening Capital

Question 3.
The liabilities of a firm are Rs. 60,000 and the capital of the proprietor is Rs. 40,000. The total assets are:
(a) 60,000
(b) 1,00,000
(c) 20,000
(d) 40,000

Question 4.
If a film borrows a sum of money, there will be
(a) Increase in capital
(b) Decrease in capital
(c) No effect on capital
(d) None of the above

Question 5.
Debit Means
(a) an increase in asset
(b) a decrease in asset
(c) an increase in liability
(d) an increase in capital

Answer: (a) an increase in asset

Question 6.
Journal is a book of in accounting.
(a) All non-cash transactions
(b) Secondary entry
(c) Original entry
(d) All cash transaction.

Question 7.
The following account has a debit balance
(a) Creditor’s A/c
(b) Capital A/c
(c) Building A/c
(d) Loan A/c

Question 8.
Ledger is a book of …………. in accounting.
(a) All non-cash transactions
(b) Secondary entry
(c) Original entry
(d) All cash transactions

Question 9.
The process of recording a business transaction in the journal is called
(a) Costing
(b) Balancing
(c) Posting
(d) Journalising

Question 10.
Which of the following is a cash transaction?
(a) Sold goods
(b) Sold goods to Ravinder
(c) Sold goods to Ravinder on credit
(d) Sold goods to Ravinder on account.

Fill in the blanks

Question 1.
The accounting voucher are based on …………….

Question 2.
Both debit and credit aspects of a transaction are shown by …………… vouchers.

Question 3.
Accounting equation satisfies the …………….. concept of accounting.

Question 4.
Liabilities = ……………….. – Capital

Question 5.
Accounting equation serves as a basis for preparing …………….

Question 6.
Journalising is the process of entering transactions in ………………

Question 7.
The explanation of a Journal entry is known as ……………….

Question 8.
Transactions, when recorded in journal, are known as ………………

Question 9.
Ledger account gives the folio of ………………….